Once allies, Elon Musk and President Donald Trump are now locked in a public feud that has captivated the nation and sent ripples through politics, business, and the stock market. What began as a disagreement over a legislative bill has escalated into a full-blown conflict, with both sides trading barbs and threatening actions that could reshape industries. In this post, we’ll explore every detail of this fallout from its origins to its far-reaching implications and examine what it means for the future of American industry.
Introduction: From Allies to Adversaries
Elon Musk, the billionaire CEO of Tesla and SpaceX, and President Donald Trump were once seen as unlikely allies. Musk had donated millions to Trump’s campaigns and publicly supported his policies. However, in early June 2025, their relationship took a dramatic turn. Musk’s sharp criticism of Trump’s “big, beautiful bill” sparked a feud that has since escalated, with Trump threatening to cut government contracts and Musk making controversial claims. This rift has implications not just for the two men but for the industries they influence, from electric vehicles to space exploration.
The Origins: A “Disgusting Abomination”
The feud began on June 3, 2025, when Musk publicly criticized Trump’s legislative package, calling it a “disgusting abomination.” This statement, reported by CNN, shocked Republican leaders who had grown accustomed to Musk’s support. Just days earlier, on May 30, 2025, Musk had described himself as a “friend and advisor” to Trump, making his sudden pivot all the more surprising.
Musk’s criticism didn’t stop there. He took to X (formerly Twitter) to share years-old comments from Trump and other Republicans condemning government spending and deficits, further fueling the fire.
Escalation: Contracts, Insults, and Public Spats
The conflict quickly escalated. Trump, known for his retaliatory style, considered terminating government contracts with Musk’s companies, particularly SpaceX, which has received over $20.9 billion in contracts since 2008 (BBC). In a heated interview with ABC News on June 6, 2025, Trump called Musk “the man who has lost his mind” and said he was “not particularly” interested in reconciling (Washington Post). Later that day, Trump told CNN he was “not even thinking about” Musk and wouldn’t speak to him “for a while.”
Musk, never one to back down, responded by making controversial claims, including alleging Trump’s involvement in Jeffrey Epstein’s unreleased criminal files a move that only intensified the feud.
Political and Public Reactions
Republicans largely sided with Trump. Rep. Thomas Massie (R-Kentucky) celebrated the feud by holding a clock displaying the national debt, while Sen. Ted Cruz (R-Texas) witnessed Trump’s frustration firsthand in the Oval Office (Washington Post). On X, reactions were mixed:
- @lhfang (April 8, 2025) suggested Musk’s breaks with Trump are tied to business interests, like opposing tariffs and supporting H1B visas (X).
- @ReallyAmerican1 (December 28, 2024) highlighted a “full-fledged war” between Trump’s supporters and Musk, with Steve Bannon calling Musk a “total and complete phony” (X).
- @hosun_chung (May 29, 2025) claimed Trump’s decisions cost Musk $2 billion, putting Tesla, SpaceX, and xAI at risk (X).
Implications for American Industry
The Musk-Trump feud has far-reaching consequences for several key sectors. Here’s a breakdown:
Aspect
Details
Implications for American Industry
Campaign Funding
Musk donated $290m to Trump and Republicans; hinted at creating a new political party.
Potential reduction in Republican funding for midterms (Nov 2026), possible shift to opposing Trump.
Government Contracts
SpaceX awarded $20.9bn in contracts since 2008; Musk's companies face over 30 investigations.
Risk of contract cancellations, legal complexities; continued reliance on SpaceX for NASA missions.
Regulatory Issues
Tesla faces regulatory hurdles, e.g., driverless taxi approvals.
Potential delays or increased scrutiny on Tesla and Musk's companies.
- Campaign Funding: Musk’s $290 million in donations to Trump and the GOP could dry up, impacting Republican funding for the 2026 midterms. Rumors of Musk starting a new political party add uncertainty (BBC).
- Government Contracts: SpaceX’s contracts are at risk, but the government’s reliance on the company for NASA missions complicates any potential cancellations. Musk’s companies also face over 30 ongoing investigations, adding legal pressure.
- Regulatory Issues: Tesla could see delays in approvals for innovations like driverless taxis, affecting its market position and growth.
Recent Developments: Selling Teslas and Epstein Claims
As of June 7, 2025, the feud shows no signs of cooling. Trump is reportedly considering selling his cherry-red Tesla, a symbolic gesture of their broken alliance (Washington Post). Meanwhile, Musk has doubled down, making inflammatory claims about Trump’s alleged ties to Jeffrey Epstein. Despite a slight de-escalation from White House press secretary Karoline Leavitt, who avoided echoing Trump’s insults, tensions remain high.
Market Impact: Tesla’s Stock Rollercoaster
The feud has also rattled investors. On June 6, 2025, Tesla’s stock plummeted 14% amid fears of regulatory changes and the potential loss of federal tax incentives for electric vehicles. However, it rebounded by nearly 4% the following day, reflecting the market’s uncertainty (Washington Post). This volatility underscores how closely tied Tesla’s fortunes are to the political climate.
Conclusion: An Ongoing Saga
The fallout between Elon Musk and President Trump is more than a personal spat—it’s a clash with significant implications for politics, business, and the economy. From campaign funding to government contracts and stock market fluctuations, the effects are already being felt. As both men continue to dig in, the feud shows no signs of resolution. Stay tuned for further developments as this story unfolds.
Sources:
- CNN: Timeline of Elon Musk and Donald Trump's feud
- BBC: How Trump and Musk are intertwined despite falling out
- Washington Post: Trump calls Elon Musk 'the man who has lost his mind'
- X: @lhfang on Musk's business interests
- X: @ReallyAmerican1 on the war between Trump supporters and Musk
- X: @hosun_chung on Trump's decision costing Musk $2B